Jay Freeborne

by Jay Freeborne, Enrolled Agent

We recently got off phone with gentleman in L.A. who owed the IRS 100k and was recently quoted a fee from someone on this list for $8000 to represent him on his tax problem and possibly pursue an Offer in Compromise on his debt. That's a pretty high quote. So we wanted to explore the components that make up a fee for representation and to determine what constitutes a reasonable fee:

Here's some criteria that could increase (or reduce) our standard $1750 fee for such a case:

1. Urgency. If you have a levy against you that has to be released - you should expect to pay a slight premium.

2. Self employment. Being in business for yourself means more paperwork and other complexities like the need to be current on this year's taxes. Self-employment could increase your fee.

3. Amount of savings. You really shouldn't charge someone for how much you'll save them. BUT if you are settling a $1.7 million debt for $50,000 - there's got to be some bonus fee for that :)

4. Is a Revenue Officer (RO) assigned? In 2017 with a severely hampered IRS, the cases that are serious are those that are assigned to a RO. ROs will levy if deadlines aren't met so their cases are more serious.

The gentleman described in this post appreciated our $1850 fee and excellent reputation so hired us. Washington Tax Services has reasonable fees, excellent customer service and nearly 30 years of experience. We win most "beauty contests" in the tax relief game. Check us out. Email us a description of your situation and we'll respond by phone, text or email.

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